Presumptive Tax Eligibility Tree — 44AD / 44ADA / 44AE
Check which presumptive scheme applies and compute deemed income
How it works
The tree first tests the assessee and activity, then applies the configured 44AD business, 44ADA profession, or 44AE goods-carriage branch and computes deemed income from the selected receipt or vehicle inputs.
FAQs
Who can use 44AD?
Resident individual / HUF / partnership firm (NOT LLP, NOT company)
Who can use 44ADA?
Resident individual or partnership firm (NOT LLP, NOT company)
What is 44AE?
Any assessee owning goods carriages — individual, HUF, firm, company
What is the digital receipt limit?
₹3,00,00,000 (₹3 crore) — only if cash receipts ≤ 5% of total gross receipts and gross payments
What are common traps?
44AD not available to LLPs or companies — only resident individual/HUF/partnership 44ADA not available to LLPs — only individual or partnership Company promoter using personal 44AD for professional fees received through personal capacity while running a pvt ltd — separate income streams The 5-year opt-out lock-in for 44AD means declaring lower profit than 8%/6% triggers 5 years of mandatory audit FA 2023: ₹3Cr limit for 44AD requires BOTH receipts AND payments to be >95% digital — not just receipts